A client and her sister were gifted some agricultural land by her dad in 2013. The dad then left to become resident in Gibralter and since Brexit has become domiciled in Spain. The client started an initial planning application in 2016 and between the client and her sister spent in the region of £150k. Outline planning permission was granted in 2019, however with the local plan, 40% of this development must be social housing and the client must also make a cash contribution towards the schools/ council, etc of around £274k.
With this in mind the clients preferred option is to sell 9 individual plots, develop one plot herself and one for her sister as self builds and retain some land. With this route the client would still need to make a contribution towards th local services, however this would be proportional with 9 houses. The client would also need to provide all services, utilities and roads if they went down this route. This is likely to cost in the region of £450k however each plot is likely to be sold for in the region of £230k as well as having nice houses each at cost.
The client is looking for the most effective tax planning solutions, however there is lots to consider. Any thoughts/ ideas would be much appreciated.